9.docx - CHAPTER 2 ETHICS FRAUD AND INTERNAL CONTROL A Describe THREE(3 categories of fraud schemes(3 Marks Fraudulent statements Corruption Asset

9.docx - CHAPTER 2 ETHICS FRAUD AND INTERNAL CONTROL A...

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CHAPTER 2: ETHICS, FRAUD AND INTERNAL CONTROL A. Describe THREE (3) categories of fraud schemes. (3 Marks) Fraudulent statements Corruption Asset Misappropriation B. Explain TWO (2) importance of internal control. (2 Marks) To safeguard the firm’s assets To ensure accurate and reliable accounting records and information To promote efficiency C. Ayday Auto Centre is a one-stop automotive company that provides all services from tyre repair and replacement to other automotive maintenance services. Currently the company employs 20 full-time employees. The following describes the payroll procedures for the company. Every day, the employees use a time clock that is placed at a remote and unsupervised area to record their daily working time. At the end of the month, the employees submit the timesheets to their supervisor, Mr Danial. Since Mr Danial is busy with other duties, he asks each employee to exchange their timesheets with their colleagues, self-review and approve the timesheets before they forward them to the payroll clerk. The payroll clerk, Miss Dania enters the employees’ records using a computer that is shared with her colleagues. She then prepares a payroll register and sends it to the accounting department. When the accounting department employee, Miss Molly, gets the payroll register
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  • Fall '19
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